Posted by Brent on January 13, 2004 at 18:36:06:
Barring disintermediation, a lender wouldn’t entertain a short sale if the loan was current. If the buyer was doing a sub-to transaction, they would bring the payments current to protect their position.
The ratio of the arrearage to the equity being purchased affects the pathway choice. You’d probably have to come across a dumb sub-to buyer to encounter this.